Restaurant Unstoppable #1266: Randy Hines, CEO & Partner at The Kolache Shoppe

Date: April 2, 2026
Host: Eric Cacciatore
Guest: Randy Hines, CEO & Partner, The Kolache Shoppe

Overview: The Power of "Baking Great Days" and Growing an Iconic Brand

In this rich, motivational episode, Eric sits down with Randy Hines, CEO and partner at The Kolache Shoppe in Houston, TX, for a deep dive into the journey of acquiring, revitalizing, and scaling a beloved regional bakery. Randy shares his path from zero restaurant experience to running a multi-unit bakery operation with an effective, people-centric franchise model. The episode uncovers strategic decisions in operations, technology adoption, growth pains, and the soul of hospitality, offering a blend of inspiration and hard-earned operational insight.

Key Discussion Points & Insights

1. Starting with No Restaurant Experience

Randy’s background is in accounting and IT (11:13), with no previous food industry work.
Story of how he discovered and eventually took over The Kolache Shoppe from its founder, Erwin Ahrens, driven by passion for kolaches and Texas regional foodways.
The acquisition process took several years, illustrating the patience required to take over a legacy business (16:26, 25:25).
Key lesson: "The idea of taking over is very different than just discussing taking over." (16:34, Randy)

2. Business Model & Early Revitalization

The Kolache Shoppe focuses on a simple, QSR-style business with minimal seating (05:52).
Most business is takeout, with 15% in catering (06:13).
Locations range from 750 to 1,400 sq ft, with a strong preference for drive-thrus and walk-up windows (07:00).
The original business’s books were not well kept, requiring Randy to reverse-engineer the financials (22:27).
"I had to kind of…reverse engineer the books and just get a ballpark of what this thing is doing." (22:27, Randy)
Early years focused heavily on presence and caring for the business: "Someone cares. You walk in and you’re like, someone cares about this little home." (24:22, Randy)

3. Key Numbers, Profitability, and Systems

Pre-COVID, profitability per unit ranged from 20-25%; currently, it’s 10-25% due to rising costs (08:12).
Target prime cost is still below 60% (09:04).
Labor and scratch baking push labor cost to 32%, food cost around 27% (10:01).
Standard kitchen staff: 3-5 people, scaling as needed (10:23).
Key takeaway: Focus on what you do well, keep model simple, and monitor numbers closely.

4. Systematization & Technology Integration

Early challenges were staffing: "First challenge was just staffing…like, what do you do if your baker leaves?" (38:13, Randy)
Use of cameras and Jolt task software was transformative: Jolt sends notifications if key opening tasks (e.g., baker arrival) aren’t completed, vastly reducing owner stress (41:12–42:13).
Importance of leaning into available tech: "We were popping up…all this stuff becoming available." (42:13, Randy)
Kept things simple but effective – incremental improvements and technology adoption as business grew.

5. Growth, Opportunity, and Franchising

Second location opened four years post-acquisition (2018), catalyzed by word-of-mouth and organic buzz (47:27), not aggressive expansion.
At one point, considered selling the business, but a timely call from a developer opened the opportunity to launch a second unit in the Heights (50:27).
Franchising emerged organically after key employees expressed interest in ownership; not originally part of the plan (58:04).
Franchise process formalized with consultants and detailed manuals to support franchisees (75:37).
Not obsessed with scale: "We don’t have a number. Who are you…and if that starts to change as you hit some magical number, it’s the number that changes, not who you are." (67:39, Randy)

6. Pain Points & Realities of Scaling

Failed franchise experiment in a new suburb highlighted the difficulty of new markets and the need for experienced operators (81:02–82:53).
Emphasized ongoing focus: stabilizing current locations, supporting existing franchisees, and preserving culture over rapid expansion (84:13).
"Protecting the people…just making sure we’re really doing well by them." (86:04, Randy)

7. Organization, Delegation, & Outsourcing

Structure: Randy (CEO), Lucy (partner), Michael (director of ops, partner), franchisees for each unit (88:48–89:06).
Extensive outsourcing: bookkeeping, tax, PR/social media (89:23, 91:07), and app development/marketing tools (101:16).
Use of Toast POS (2020), integrated with appfront for loyalty/email, and Jolt for tasks/checklists (94:02–96:23).
Tech adoption guided by pain point resolution and freeing up owners’ time for higher-level decisions.

8. Culture, Human Connection, and the Future of Hospitality

Recurring theme: culture and presence are what make The Kolache Shoppe unstoppable (109:28).
Human connections trump automation in building customer loyalty and meaning (108:03–109:02).
Randy’s philosophy: Be humble, have grit, and love food – "Food is convivial. Food is life and culture." (111:38, Randy)
Future of restaurants: marry innovation (tech, experience) with "ultra human" touch—never lose sight of what’s real (106:30).

Notable Quotes & Memorable Moments

On staff and influence in hospitality:
"We get people when they’re full of hope and optimism, and give them a good nudge out the door as they go conquer their day. It’s a big deal." (04:26, Randy)
On raising prices:
"We have not accelerated our price raises as quickly, with intention. We’re just not doing that, because we’re doing okay." (09:08, Randy)
On presence and caring:
"There needs to be some kind of presence… someone cares about this little home. That’s how we feel." (24:22, Randy)
On early lessons:
"Maybe you think you want it, then you do it…" (69:55, Eric)
On attracting opportunity:
"You don’t go chase opportunity. You attract it." (50:54, Eric)
On building company culture and expansion:
"If you’re not doing that, you’re really not succeeding—regardless what the numbers are." (79:01, Randy)
On the value of wise growth:
"Why chase that millionth dollar like it’s your first?...As you go on this arc of your life, you need to be pivoting all along." (72:37, Randy)
On technology as lever for omnipresence:
"Leaning on systems and technology that allows you to be omnipresent." (43:08, Eric)
On what makes them unstoppable:
"It really is our culture and our people… if you said, what makes us that group of birch trees that doesn’t get blown off the face of the earth—it’s our culture." (109:28, Randy)
Three pieces of wisdom for legacy:
"Be humble and grounded… have grit… be a foodie." (111:22, Randy)

Timeline of Important Segments

03:26 – Guest introduction, vision for the episode
04:26 – “Baking great days” success mantra
05:45 – The Kolache Shoppe today: footprint, business model, revenue, prime costs
10:01 – Kitchen staffing structure and labor cost breakdown
16:26 – How Randy took over the business, meeting the founder, and early challenges
24:22 – The importance of presence, legacy, and generational revitalization
38:13 – First major operational pain point: staffing
41:12 – Implementation of technology: Jolt task management
47:27 – Local marketing and organic growth strategies
58:04 – The birth of the franchising idea
67:39 – Approach to franchising and protecting brand/culture
84:13 – Strategic pause on further expansion, focus on supporting team and existing stores
94:02 – Tech stack overview: Toast POS, Jolt, appfront, outsourcing accounting/PR
106:00 – Future of the industry: innovating without losing humanity
109:28 – What makes The Kolache Shoppe unstoppable
111:22 – Randy’s three legacy lessons

Takeaways for Aspiring Restaurateurs

Grow deliberately: focus on systems, culture, and community over mindless expansion.
Build from the ground up: master every function of the business before delegating.
Attract opportunity by being active, engaged, and authentic in your community.
Adopt technology to free up your time and create omnipresence, but never lose focus on personal connection.
Protect your core values and let your mission, not just opportunities, guide decisions.

Connect with Randy & The Kolache Shoppe

Website: kolachishoppe.com
Instagram: Linked on website

Legacy and Inspiration:

"We get one shot, right? So you want to honor the life that you’re part of, and to pass it along." (112:30, Randy)

Randy’s story is a testament to the impact of grit, humility, culture, and the power of saying yes to just the right opportunities—making every day a “baked great day” for team and community alike. This episode is an essential blueprint for anyone looking to grow a restaurant business with soul!

For further notes, links, and recommended contacts, check the show notes at restaurantunstoppable.com.

Restaurant Unstoppable #1266: Randy Hines, CEO & Partner at The Kolache Shoppe

Date: April 2, 2026
Host: Eric Cacciatore
Guest: Randy Hines, CEO & Partner, The Kolache Shoppe

Overview: The Power of "Baking Great Days" and Growing an Iconic Brand

Key Discussion Points & Insights

1. Starting with No Restaurant Experience

Randy’s background is in accounting and IT (11:13), with no previous food industry work.
Story of how he discovered and eventually took over The Kolache Shoppe from its founder, Erwin Ahrens, driven by passion for kolaches and Texas regional foodways.
The acquisition process took several years, illustrating the patience required to take over a legacy business (16:26, 25:25).
Key lesson: "The idea of taking over is very different than just discussing taking over." (16:34, Randy)

2. Business Model & Early Revitalization

The Kolache Shoppe focuses on a simple, QSR-style business with minimal seating (05:52).
Most business is takeout, with 15% in catering (06:13).
Locations range from 750 to 1,400 sq ft, with a strong preference for drive-thrus and walk-up windows (07:00).
The original business’s books were not well kept, requiring Randy to reverse-engineer the financials (22:27).
"I had to kind of…reverse engineer the books and just get a ballpark of what this thing is doing." (22:27, Randy)
Early years focused heavily on presence and caring for the business: "Someone cares. You walk in and you’re like, someone cares about this little home." (24:22, Randy)

3. Key Numbers, Profitability, and Systems

Pre-COVID, profitability per unit ranged from 20-25%; currently, it’s 10-25% due to rising costs (08:12).
Target prime cost is still below 60% (09:04).
Labor and scratch baking push labor cost to 32%, food cost around 27% (10:01).
Standard kitchen staff: 3-5 people, scaling as needed (10:23).
Key takeaway: Focus on what you do well, keep model simple, and monitor numbers closely.

4. Systematization & Technology Integration

Early challenges were staffing: "First challenge was just staffing…like, what do you do if your baker leaves?" (38:13, Randy)
Use of cameras and Jolt task software was transformative: Jolt sends notifications if key opening tasks (e.g., baker arrival) aren’t completed, vastly reducing owner stress (41:12–42:13).
Importance of leaning into available tech: "We were popping up…all this stuff becoming available." (42:13, Randy)
Kept things simple but effective – incremental improvements and technology adoption as business grew.

5. Growth, Opportunity, and Franchising

Second location opened four years post-acquisition (2018), catalyzed by word-of-mouth and organic buzz (47:27), not aggressive expansion.
At one point, considered selling the business, but a timely call from a developer opened the opportunity to launch a second unit in the Heights (50:27).
Franchising emerged organically after key employees expressed interest in ownership; not originally part of the plan (58:04).
Franchise process formalized with consultants and detailed manuals to support franchisees (75:37).
Not obsessed with scale: "We don’t have a number. Who are you…and if that starts to change as you hit some magical number, it’s the number that changes, not who you are." (67:39, Randy)

6. Pain Points & Realities of Scaling

Failed franchise experiment in a new suburb highlighted the difficulty of new markets and the need for experienced operators (81:02–82:53).
Emphasized ongoing focus: stabilizing current locations, supporting existing franchisees, and preserving culture over rapid expansion (84:13).
"Protecting the people…just making sure we’re really doing well by them." (86:04, Randy)

7. Organization, Delegation, & Outsourcing

Structure: Randy (CEO), Lucy (partner), Michael (director of ops, partner), franchisees for each unit (88:48–89:06).
Extensive outsourcing: bookkeeping, tax, PR/social media (89:23, 91:07), and app development/marketing tools (101:16).
Use of Toast POS (2020), integrated with appfront for loyalty/email, and Jolt for tasks/checklists (94:02–96:23).
Tech adoption guided by pain point resolution and freeing up owners’ time for higher-level decisions.

8. Culture, Human Connection, and the Future of Hospitality

Recurring theme: culture and presence are what make The Kolache Shoppe unstoppable (109:28).
Human connections trump automation in building customer loyalty and meaning (108:03–109:02).
Randy’s philosophy: Be humble, have grit, and love food – "Food is convivial. Food is life and culture." (111:38, Randy)
Future of restaurants: marry innovation (tech, experience) with "ultra human" touch—never lose sight of what’s real (106:30).

Notable Quotes & Memorable Moments

On staff and influence in hospitality:
"We get people when they’re full of hope and optimism, and give them a good nudge out the door as they go conquer their day. It’s a big deal." (04:26, Randy)
On raising prices:
"We have not accelerated our price raises as quickly, with intention. We’re just not doing that, because we’re doing okay." (09:08, Randy)
On presence and caring:
"There needs to be some kind of presence… someone cares about this little home. That’s how we feel." (24:22, Randy)
On early lessons:
"Maybe you think you want it, then you do it…" (69:55, Eric)
On attracting opportunity:
"You don’t go chase opportunity. You attract it." (50:54, Eric)
On building company culture and expansion:
"If you’re not doing that, you’re really not succeeding—regardless what the numbers are." (79:01, Randy)
On the value of wise growth:
"Why chase that millionth dollar like it’s your first?...As you go on this arc of your life, you need to be pivoting all along." (72:37, Randy)
On technology as lever for omnipresence:
"Leaning on systems and technology that allows you to be omnipresent." (43:08, Eric)
On what makes them unstoppable:
"It really is our culture and our people… if you said, what makes us that group of birch trees that doesn’t get blown off the face of the earth—it’s our culture." (109:28, Randy)
Three pieces of wisdom for legacy:
"Be humble and grounded… have grit… be a foodie." (111:22, Randy)

Timeline of Important Segments

03:26 – Guest introduction, vision for the episode
04:26 – “Baking great days” success mantra
05:45 – The Kolache Shoppe today: footprint, business model, revenue, prime costs
10:01 – Kitchen staffing structure and labor cost breakdown
16:26 – How Randy took over the business, meeting the founder, and early challenges
24:22 – The importance of presence, legacy, and generational revitalization
38:13 – First major operational pain point: staffing
41:12 – Implementation of technology: Jolt task management
47:27 – Local marketing and organic growth strategies
58:04 – The birth of the franchising idea
67:39 – Approach to franchising and protecting brand/culture
84:13 – Strategic pause on further expansion, focus on supporting team and existing stores
94:02 – Tech stack overview: Toast POS, Jolt, appfront, outsourcing accounting/PR
106:00 – Future of the industry: innovating without losing humanity
109:28 – What makes The Kolache Shoppe unstoppable
111:22 – Randy’s three legacy lessons

Takeaways for Aspiring Restaurateurs

Grow deliberately: focus on systems, culture, and community over mindless expansion.
Build from the ground up: master every function of the business before delegating.
Attract opportunity by being active, engaged, and authentic in your community.
Adopt technology to free up your time and create omnipresence, but never lose focus on personal connection.
Protect your core values and let your mission, not just opportunities, guide decisions.

Connect with Randy & The Kolache Shoppe

Website: kolachishoppe.com
Instagram: Linked on website

Legacy and Inspiration:

"We get one shot, right? So you want to honor the life that you’re part of, and to pass it along." (112:30, Randy)

For further notes, links, and recommended contacts, check the show notes at restaurantunstoppable.com.

wavePod

1266: Randy Hines, CEO and Partner at The Kolache Shoppe

Summary

Restaurant Unstoppable #1266: Randy Hines, CEO & Partner at The Kolache Shoppe

Overview: The Power of "Baking Great Days" and Growing an Iconic Brand

Key Discussion Points & Insights

1. Starting with No Restaurant Experience

2. Business Model & Early Revitalization

3. Key Numbers, Profitability, and Systems

4. Systematization & Technology Integration

5. Growth, Opportunity, and Franchising

6. Pain Points & Realities of Scaling

7. Organization, Delegation, & Outsourcing

8. Culture, Human Connection, and the Future of Hospitality

Notable Quotes & Memorable Moments

Timeline of Important Segments

Takeaways for Aspiring Restaurateurs

Connect with Randy & The Kolache Shoppe

Legacy and Inspiration:

Summary

Restaurant Unstoppable #1266: Randy Hines, CEO & Partner at The Kolache Shoppe

Overview: The Power of "Baking Great Days" and Growing an Iconic Brand

Key Discussion Points & Insights

1. Starting with No Restaurant Experience

2. Business Model & Early Revitalization

3. Key Numbers, Profitability, and Systems

4. Systematization & Technology Integration

5. Growth, Opportunity, and Franchising

6. Pain Points & Realities of Scaling

7. Organization, Delegation, & Outsourcing

8. Culture, Human Connection, and the Future of Hospitality

Notable Quotes & Memorable Moments

Timeline of Important Segments

Takeaways for Aspiring Restaurateurs

Connect with Randy & The Kolache Shoppe

Legacy and Inspiration: